EUR/GBP hits two-month highs near 0.8700 ahead of ECB

- Advertisement -
  • EUR/GBP resumes gains after two days of correction.
  • Price makes a high of 0.8688, the strongest level since June 15.
  • Thursday: ECB decision and Truss energy plan.

The EUR/GBP resumes gains after a two-day correction. It recently rose to 0.8688, reaching the highest level since June 15. It is hovering around 0.8665, about to post the second highest daily close in 16 months.

Thursday could be a very volatile day for EUR/GBP with the European Central Bank meeting and UK energy plan. The ECB is expected to raise rates by 75 basis points and release macroeconomic forecasts. “The higher-than-expected August CPI readings certainly make the case for a more aggressive tightening and it seems that more and more Governing Council officials are leaning towards this outcome. Although the energy crisis adds another edge to the process , we think it’s too early for it to affect ECB policy at this point,” commented analysts at Brown Brother Harriman.

- Advertisement -

UK Prime Minister Liz Truss is expected to unveil her energy plans tomorrow as the pound remains under pressure. GBP/USD fell to the lowest levels in decades, near 1.1400.

With EUR/GBP trading around critical levels and taking the above developments into account, volatility will remain high. The cross is near 0.8700 and also near the 200-week SMA, currently at 0.8702. A firm break above 0.8720 should clear the way for more gains in the medium term. On the contrary, if the pound manages to hold that level, a recovery seems likely, especially if the cross falls below 0.8560.

- Advertisement -

Technical levels

EUR/GBP

Panorama
Last Price Today 0.8677
Today’s Daily Change 0.0081
Today’s Daily Change % 0.94
Today’s Daily Opening 0.8596
Trends
20 Daily SMA 0.8504
50 Daily SMA 0.8487
100 Daily SMA 0.8499
200 Daily SMA 0.8444
levels
Previous Daily High 0.8624
Previous Daily Minimum 0.8566
Previous Maximum Weekly 0.8677
Previous Weekly Minimum 0.8487
Monthly Prior Maximum 0.8653
Previous Monthly Minimum 0.834
Daily Fibonacci 38.2% 0.8588
Daily Fibonacci 61.8% 0.8602
Daily Pivot Point S1 0.8567
Daily Pivot Point S2 0.8538
Daily Pivot Point S3 0.851
Daily Pivot Point R1 0.8624
Daily Pivot Point R2 0.8653
Daily Pivot Point R3 0.8682

Source: Fx Street

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Hot Topics

Related Articles